What Is Product Decision?

What do we mean by product?

Definition: A product is the item offered for sale.

A product can be a service or an item.

Every product is made at a cost and each is sold at a price.

The price that can be charged depends on the market, the quality, the marketing and the segment that is targeted..

Why are product mix decisions so important?

Your product mix is important in determining the image of your business and brand, as it helps you to maintain consistency in the eyes of your target market. For instance, if you’re a discount retailer, your target market likely consists of economy-minded shoppers looking for low prices.

Decisions regarding the product, price, promotion and distribution channels are decisions on the elements of the “marketing mix”. It can be argued that product decisions are probably the most crucial as the product is the very epitome of marketing planning. Errors in product decisions are legion.

What is product and its importance?

The product is one of the important elements of the 4Ps of the marketing mix. It consists of a bundle of tangible and intangible attributes that satisfies consumers. Product is an important component in marketing-mix. Other elements of marketing-mix i.e. price, promotion and place are complementary to it.

What are the 7 types of product?

Types of Product – Goods, Services, Experiences, Convenience, Shopping, Specialty Goods, Industrial Goods and Consumer Goods.

What is difference between product and service?

A product is a tangible item that is put on the market for acquisition, attention, or consumption, while a service is an intangible item, which arises from the output of one or more individuals. … In most cases services are intangible, but products are not always tangible.

What are the 4 types of pricing strategies?

Apart from the four basic pricing strategies — premium, skimming, economy or value and penetration — there can be several other variations on these. A product is the item offered for sale. A product can be a service or an item. It can be physical or in virtual or cyber form.

Why is product line important?

A product line is a set of related products which are sold to consumers under a sole name or brand. Product lines are important for three primary reasons: familiarity, product and brand diversification through market penetration, and created value.

What is product length and width?

The width is all about the number of different product lines the company carries. … The product mix length refers to the total number of items a company carries within the product lines. For instance, Colgate carries several different brands within each line.

What is product line example?

For example, a cosmetic company that’s already selling a high-priced product line of makeup (that might include foundation, eyeliner, mascara, and lipstick) under one of its well-known brands might launch a product line under the same brand name but at a lower price point.

What are the three major elements of the product decision?

The three major elements of the product decision are: Selection, definition, and design.

What does a product line mean?

A product line is a group of products that a company creates under a single brand. The products are similar and focus on the same market sector. Maybe their function or channel distribution are the same or similar. Perhaps their physical attributes, prices, quality, or type of customers are the same.

What is McDonald’s product line?

McDonald’s menu includes hamburgers and cheeseburgers, the Big Mac, Quarter Pounder with Cheese, and Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Snack Wraps, French fries, salads, oatmeal, shakes, McFlurry desserts, sundaes, soft-serve cones, pies, soft drinks, coffee, McCafé beverages, and other …

What is product line decision?

Product Line Decisions means a company offers similar products to solve a whole range of similar problems that target customers have.

What is the objective of the product decision?

The objective of the product decision is to develop and implement a product strategy that meets the demands of the marketplace with a competitive advantage.

What are pricing decisions?

Pricing is a decision area which draws together contributions from the theories of demand, cost and market structure. … Moreover, the pricing decision is a means to an end, and not the end in itself, so that decisions about price must be considered in the context of overall business objectives.

What is product policy decision?

Product policy is concerned with defining the type, volume and timing of products a company offers for sale. The product policies are general rules set up by the management itself in making product decisions. Good product policies are the basis on which the right products are produced and marketed successfully.

What are the 4 product line expansion?

There are four “stages” of the life cycle of a product: introduction, growth, maturity, and decline. The launch is exciting and is often followed by a surge of sales, but at some point, the product will wear itself out.

What are the 4 factors that affect price?

Price Determination: 6 Factors Affecting Price Determination of…Product Cost: The most important factor affecting the price of a product is its cost. … The Utility and Demand: Usually, consumers demand more units of a product when its price is low and vice versa. … Extent of Competition in the Market: … Government and Legal Regulations: … Pricing Objectives: … Marketing Methods Used:

What are the 3 pricing objectives?

Some of the more common pricing objectives are:maximize long-run profit.maximize short-run profit.increase sales volume (quantity)increase monetary sales.increase market share.obtain a target rate of return on investment (ROI)obtain a target rate of return on sales.More items…

What is product mix and examples?

Product mix, also known as product assortment, refers to the total number of product lines a company offers to its customers. For example, your company may sell multiple lines of products. … Or your product lines may be vastly different, such as diapers and razors.